Total Rewards, Recognition and Engagement

Total Rewards, Recognition and Engagement
A Caregiver (Employee) Recognition Success Story at Cleveland Clinic
Matthew Majernik, Executive Director,
Total Rewards, Workforce Planning & HRIS
Agenda
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Cleveland Clinic Experience
Total Rewards Overview & Strategy
Recognition Program & Design
Funding / ROI
Partnerships & Technology
Communication & Training
Integration with Total Rewards
Success Metrics
Future: Evolution of WELLbeing
Cleveland Clinic
• Founded in 1921 in Cleveland
• Guiding principle: “Patients First”
• Physician founded and physicianled group practice
• Ranked 4th best hospital in the U.S.
according to U.S. News & World
Report (#1 in Heart for 20 yrs)
• $6.5 Billion Revenue
• 43,000 Caregivers
• Focused on innovation, health and
wellness
• 3,200 physicians & scientists +
1,800 residents & fellows
• Committed to clinical research and
education
Patient Experience
Caregiver Experience
Cleveland Clinic Experience
Clinical Outcomes
Cleveland Clinic Experience
Mission
To provide better care of the sick, investigation into their
problems and further education of those who serve
Vision
Striving to be the world’s leader in patient experience,
clinical outcomes, research and education
Values
Quality
Service
Innovation
Integrity
Guiding Principle
“Patients First”
Teamwork
Compassion
Total Rewards
• Attract, Engage & Retain our caregivers
• Drive overall Cleveland Clinic Experience
• Support Cleveland Clinic mission, values
and “Patients First” focus
• Support employee engagement and
caregiver wellbeing
Total Rewards Strategy
• Talent Management Strategy
– Integrate with recruitment, performance management,
development and engagement
• Employee Preferences
– What’s really important to our employees
• External Competitiveness
– Design and competitiveness of the various total
reward program elements (across all industries)
• Financial Impact
– Relative cost and value of rewards and practices
A Total Rewards opinion study can help you with two of these strategies
Total Rewards Elements
• Base Pay, Merit, Promotions, Incentives
• Health & Welfare Core Benefits
• Retirement & Financial Security programs
• Life & Disability Insurance
• Tuition Reimbursement
• Rewards & Recognition program
• Caregiver Wellbeing programs (PTO, EAP)
• Performance Management & Career Development
• Voluntary Benefits (Auto, Home, Legal, Pet)
• Fringe Benefits
− service awards, wellness, discounts, adoption
Recognition Program Objectives
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Enterprise-wide recognition program
Drive engagement
Attract, motivate & retain talent
Drive Cleveland Clinic Experience and values
Build culture of recognition and employee wellbeing
Payroll / tax compliance
Award tracking & reporting
Competitive edge versus other organizations
Program Design
• Design
– Tier 1: Peer-to-peer
– Tier 2: Manager to employee
– Tier 3: Division / Dept to employee
– Tier 4: Enterprise to Individual / Team
• Communications
• Technology & Training
• Leadership buy-in
Leadership Buy-in
• Employee Engagement
• Motivation & Retention
• Total Rewards Package
• Return on Investment
• Offset impact of other
program reductions
• Enterprise program
• Cleveland Clinic values
• Pride and Connection
• Management Tool
• Overall CC Experience
“Great Place to Work”
• Tier 1:
Appreciation Award
• Tier 2:
Honors Award
• Tier 3:
Excellence Award
• Tier 4:
Caregiver Award
Tier 1 – Appreciation Award
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Non-monetary Recognition
Peer-to-peer
Culture building
Cleveland Clinic Experience & CC Values
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Quality
Innovation
Teamwork
– Service
– Integrity
– Compassion
Tier 2 – Honors Award
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Manager recognition of Individuals
Budget $25 per employee per year
Recognition Gift Certificate denominations
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$10, $25, $50 or $100 (+ tax gross up)
Fully Automated
Tax compliance is achieved
Tier 3 – Excellence Award
• Quarterly Institute, Division, Hospital recognition
• Individuals / Teams
• 4% of caregivers (1% per quarter)
• Automated process
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Quarterly nomination process
Recognize institute’s most significant achievements
• Symbolic desktop award
• Flexibility to support division initiatives
Tier 4 – Caregiver Award
• Annual enterprise-wide recognition
• Individuals / Team Recognition
• 200 finalists / 50 awards
• Award banquet and symbolic desktop award
• Monetary cash award (+ tax gross up)
• One top Team and one top Individual award
Tiers 3 and 4 Symbolic Recognition
Tier 3 – Excellence Award
Tier 4 – Caregiver Award
Building a culture of recognition through financial and
tangible symbols of achievement…
“Show Me the Money!” (funding)
# Ees
40,000
Avg Pay
$ 50,000
Total Payroll
$ 2,000,000,000
Merit
Carve out
2.0%
0.1%
$ 40,000,000
$ 2,000,000
# Ees
4,000
Avg Pay
$ 50,000
Total Payroll
$ 200,000,000
Merit
Carve out
2.0%
0.1%
$ 4,000,000
$ 200,000
# Ees
400
Avg Pay
$ 50,000
Total Payroll
$ 20,000,000
Merit
Carve out
2.0%
0.1%
$ 400,000
$ 20,000
“Show Me the Money!” (distribution)
Tier 1
# / yr
$/yr
#
Tier 2
Avg $ /
Award
120,000
$0
40,000
$ 20
Tier 1
# / yr
12,000
1,200
#
$ 1,280,000 1,600
Tier 2
$/yr
#
Avg $ /
Award
$0
4,000
$ 20
Tier 1
# / yr
$ / yr
(incl tax)
$/yr
#
Tier 2
Avg $ /
Award
$0
400
$ 20
Tier 3
Avg $ /
Award
$ / yr
(incl tax)
$ 200
$ 512,000
#
Tier 4
Avg $ /
Award
$ / yr
(incl tax)
40
$ 2,000
$ 128,000
Total $
Misc $
$ 1,920,000
$ 80,000
Tier 3
$ / yr
(incl tax)
$ 128,000
$ / yr
(incl tax)
$ 12,800
Tier 4
#
Avg $ /
Award
$ / yr
(incl tax)
160
$ 200
$ 51,200
#
Avg $ /
Award
$ / yr
(incl tax)
4
$ 2,000
$ 12,800
Total $
$ 192,000
Misc $
$ 8,000
$ / yr
(incl tax)
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Tier 3
Avg $ /
Award
$ / yr
(incl tax)
#
Tier 4
Avg $ /
Award
16
$ 200
$ 5,120
1
$ 1,000
$ 1,600
Total $
$ 19,520
Misc $
$ 500
Partnerships
• Cleveland-based employee engagement
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Recognized as the technology
leader in employee performance
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Provide clients with consulting,
software engineering, account
management, rewards and
analytics
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Clients include: IBM, Verizon
Wireless, Nokia, AAA, Samsung,
Pepsico-Frito Lay, Alltel, Heinz,
GEICO, and Aetna
and performance organization
• Specializes in the design and
development of strategic recognition
and incentive programs that drive
culture, performance and ROI
• NEO Clients: Cleveland Indians,
Lubrizol, Bridgestone Americas,
Firestone Retail Operations, Moen,
Goodyear, GOJO, MTD, and Myers
Industries
Recognition Management System
System Design
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Recognition, reward distribution and administration
Reporting & analytics
Flexible reward options with program branding
Culture building, structure and continuity system-wide
Training, education and communications support
Key System Features
• Easy to use
• Flexible and scalable – by Institute and Division
• Data oriented and decentralized administration
• Fun and rewarding
Communication
Build
Build
Awareness
Awareness
Readiness
• Organizational
Readiness
• Executive Team
• HR Team
• Administrators
• Management
• Caregivers
Brand and
Theme for
•• Brand
& Theme
Rewards and
Rewards
and
Recognition Program
Recognition
• Program
Promotional Media
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(brochure, e-mails,
meetings) with
Partner
Marketing /
Communications
Communications
Advisory Committee
• Promotional Media
(brochure, emails,
meetings)
• Announcements
Leadership
Caregivers
Educate
• Announcement
Brochure and
Kickoff Video
• Manager webinars
and meetings
Reinforce
Reinforce
E-training modules
for
• E-training
manager
managers to reinforce
modules
to reinforce
successful recognition
successful
tips
recognition tips
• New Hire Materials
• •Training
job aids
Total Reward
Statements
• Caregiver
Meetings
• •Total
Reward
Manager
tool kit and
Statements
resources (ongoing)
(led by HR/managers)
• Online website
and program
overview
• Manager tool kit and
resources (ongoing)
• Ongoing recognition
newsletter
Manager Training
Custom E-Learning Suite
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Branded e-learning suite housed in Caregiver Celebrations
Six modules covering key engagement/recognition principles
Features stories and ideas from our recognition champions
Training Focus
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Managers must be recognition leaders
How and why to recognize effectively
Link between recognition, engagement, patient satisfaction
Training
What’s In It For You
Importance of Recognition
Recognition and Cleveland Clinic Values
Training
Integration with Total Rewards
• Service Awards
• Raves & Recognition Wall
• Manager Event Calendar
– Service Anniversaries
– Birthdays
• Patient (Customer) Recognitions
• Partnership Programs
Caregiver Celebrations Partnerships
Tragedy • Heroism • Hope
Note
Cards:
THANK YOU
Patient Recognition of Caregivers
• Opportunity for patients to recognize caregivers
who provide ″World Class Care″
• Complete a comment card or visit website at
www.caregivercelebrations.com
• Patient Recognition delivered as a Tier 1
Appreciation Award as a ′value′ of
′patient recognition′
Patient Recognition
Quarterly Newsletter
• Showcases quarterly
Excellence Winners
• Quick Tips to simplify
understanding of website
features
• Shares feedback from
caregivers
• Increases awareness
It’s Catching On……
Rewards and Recognition Evolution
COMBINED
RECOGNITION
SEPARATE
Recognition
programs
&
Service awards
Enterprise
Program
(4 tiers)
+
Service awards
EXPANDED
RECOGNITION
Enterprise
Program
+
Service awards
+
Partnership
programs
INTEGRATED
Rewards &
Recognition
Rewards and
Recognition
Program
+
Engagement
(aligned and
driving Values)
Success Metrics
Recognizing & Rewarding Values
> 695,000 awards since June 2010
“Recognition” one of
Cleveland Clinic’s fastest
growing engagement
metrics
Recognizing & Rewarding Values
Total Awards Given since Inception: 696,656
Tier 1 – Appreciation
501,536
Tier 2 – Honors
145,347
Tier 3 – Excellence
3,414 awards (8,266 recipients)
Tier 4 – Caregiver
206 awards (984 recipients)
CEO Award
8 awards (37 recipients)
Random Recognition & Partnership
3,039 awards (i.e. My 2 Cents, Leadership Rounding, etc)
Milestone Service Anniversary Awards
10,207 (5 year milestones)
Patient Recognition Award
27,240 (patient recognition value)
Cleveland Clinic Values Selected
Teamwork: 53%
Service: 22%
Quality:
Innovation/Compassion/Integrity: 15%
10%
Above totals include time period June 2010 to August 2014
Average Awards Per Month
19,285
20,000
13,722
16,000
12,000
8,942
7,344
8,000
4,000
0
2010
2011
2012
2013
Recognition Driving Engagement
Gallup Q4: In the last seven days, I have received recognition
or praise for doing good work
3.95
4.00
3.83
2009 – 3.26
3.67
2010 – 3.47
3.47
3.50
2008 – 3.24
2011 – 3.67
3.24
3.26
2012 – 3.83
2013 – 3.95
3.00
2008
2009
2010
2011
2012
2013
0.1 change is considered World Class Improvement
Cost per Recognition per EE
• In 2009, we had less than 1 formal recognition per
employee per year
• In 2013, recognition had risen to over 6 formal
recognitions per employee per year*
• In 2013, average Tier 1/Tier 2 award cost per
recognition = $3.92
• Average cost in CorporateRewards’ portfolio
= $45; next closest = $8 per recognition
*Numbers do not include recognition impressions through Raves & Recognition and
Manager Event Calendar
A Great Place to Work & Grow
Future:
Evolution of WELLbeing
WELLbeing Evolution
INTEGRATED
WELL being
Compensation
EXPANDED
TOTAL REWARDS
SEPARATE
Compensation
&
Benefits
COMBINED
TOTAL COMP
Compensation
+
Benefits
+
Benefits
+
Compensation
Fringe Benefits
+
Recognition
Benefits
+
+
Fringe Benefits
+
Engagement
(aligned and
driving values)
`
Every Life Deserves World Class Care
APPENDIX
Retention Drivers
RETENTION STRATEGY BY RATING
EFFECTIVENESS
USAGE
Benefits (Total Rewards)
93.4%
91%
Above Market Pay
90.6%
66%
On Boarding Program
On-Site Child Care
Shared Governance
Scholarship/Student Loan
Senior Leadership Rounding
Clinical Ladder
Nurse Residency Program
Continuing Education
Pay for Performance
Open/Two Way Communication
Turnover Reporting/Tracking
No Mandatory Overtime
Self/Flex Scheduling
Float/Flex Staffing Pool
Tuition Assistance
Management Development Training
Peer Interviewing
90.0%
86.0%
84.2%
83.6%
83.6%
83.4%
83.4%
83.2%
83.0%
82.8%
82.2%
81.6%
81.4%
80.0%
80.0%
77.6%
77.4%
62%
43%
59%
81%
79%
76%
36%
93%
64%
89%
90%
44%
74%
70%
91%
81%
69%
Recognition Program
76.8%
86%
Employee Opinion Survey
Profit/Gain Sharing
Magnet Recognition
Concierge Services
Mentorship Opportunity
No Weekends or Every Third Weekend On
Retention Committee
Retention Bonus
Stay Interviews
76.6%
72.8%
72.0%
70.0%
70.0%
69.2%
67.2%
64.4%
55.0%
79%
24%
39%
41%
70%
47%
46%
39%
43%
2011 National Healthcare & RN Retention Report , NSI Nursing Solutions, Inc.